Canada’s tourism sector is entering a promising 2026 with tourism revenue outpacing the broader economy, according to Destination Canada’s Canadian Tourism Outlook 2026–2035, prepared with Tourism Economics.
Canada is in the race to seize a greater share of the USD $2.1 trillion global market for international visitor spending, said the organization.
The Canadian tourism sector celebrated a record 2025 summer, and this momentum looks set to continue through 2026 and beyond. The outlook forecasts tourism spending in Canada will expand by 6.0% in 2026, ahead of the 5.4% projected in previous outlooks. By 2035, total tourism revenue is projected to reach $216.3 billion, up 67% from 2024 levels, explained Destination Canada.
Tourism already ranks among Canada’s top service exports. The sector supports one in 10 Canadian jobs, injects more than $364 million daily into communities across the country, and returned $32.7 billion in municipal, provincial and federal tax revenue in 2024, it added.
“Tourism is a high-growth export with fast returns,” said Marsha Walden, President and Chief Executive Officer of Destination Canada. “The Canadian Tourism Outlook shows demand is accelerating, and the opportunity for Canada is even greater if we grow global market share and continue attracting more international demand.
“Business events continues to be a driver of economic growth with Canada’s global reputation riding high, the new federal investment into Destination Canada’s International Convention Attraction Fund (ICAF) announced last week, allows Canadian cities to seize this moment to increase our market share of international business events.”
The drivers of the Canadian Tourism Outlook
- Canadians are increasingly choosing to travel at home, with reshored spending expected to add $1.5 billion in 2025 and $4.4 billion between 2025 and 2027, giving the national outlook an immediate lift across Canada.
- The United States remains Canada’s tourism cornerstone and largest international market, unmatched in scale, with total US spend forecast to grow 5.3% annually as higher-yield air arrivals outpace land and sea travel.
- Overseas markets are the sector’s export acceleration engine, forecast to grow 9.8% annually through 2035, roughly double the US pace, strengthening diversification across markets, seasons and sources of demand.
The ICAF has helped secure 116 international events for Canada, generating more than $800 million in direct economic impact and supporting more than 6,600 jobs.
The organization said business events remain a high-yield export play, with association events projected to reach 132% of 2019 levels by 2028 and delegate volumes 118%, extending long-term trade, talent and legacy benefits for host communities.
In 2025, tourism generated $133 billion in visitor spending, supporting over 280,000 businesses in 5,000 communities. With revenues projected to grow to $177B by 2030, tourism is a key economic driver and one of Canada’s top service exports, with the potential to contribute 9-10% to Canada’s $300B trade diversification goal, noted Destination Canada.
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